DSL Not Dead Yet

By Betsy Schiffman
Wired News

July 29, 2008 | 2:58:29 PM

http://blog.wired.com/business/2008/07/dsl-not-quite-d.html


Dslspeed DSL isn't a perfect technology. It's slow and clunky, it's not 
available everywhere, and it's sensitive to distance.

But is it on the verge of extinction? Laura Martin thinks so. The Media 
Metrics analyst says the fairly miserable subscriber numbers from AT&T and 
Verizon (which were released last week and this week, respectively) 
suggests cable is stealing share of the broadband market from DSL. The 
upshot, she thinks, is that DSL will become the equivalent of a narrowband 
service over the next five years -- that is, it will become obsolete.

"DSL just isn't fast enough," says Martin. "The benefit of DSL is that it's 
always one speed, but as cable operators upgrade their networks, when their 
service slows down, it only gets as slow as DSL."

Even if speed is a top priority for many power users, though, there is 
still a significant percentage of Americans who don't have access to either 
broadband or cable, so they'll settle for whatever they can get -- and that 
may mean DSL.

"Cable has historically offered faster speeds -- both uploading and 
downloading speeds -- but I think DSL is going to be around for a long, 
long time," says Doug Williams, an analyst with Jupiter Research. "Telcos 
are rolling out DSL in unserved communities, and that supports the idea 
that DSL is not going to be obsolete. It's going to be one of the few 
technologies available for some people."

Williams also argues that because DSL is a more financially feasible 
broadband solution than cable, it's potential market is larger, but Martin 
says that further proves her point that it will go the way of the pokey 
dial-up.

"It's just like narrowband," says Martin. "People stick with DSL because 
it's cheaper -- the competitive advantage is its price point. But consumers 
are increasingly valuing their time more than the money they've saved on 
it. With the explosion of online video, DSL is just not an attractive option."

(As a side note: Everywhere we've lived, telecom carriers require you to 
have a land line in order to get DSL, which costs another $30 per month, 
and ultimately makes it more expensive than cable.)



================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu

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